RoDTEP benefits restored for select export categories
Starting June 1, 2025, exporters operating in India under AAs, EOUs, and SEZs will once again be eligible for reimbursements on embedded duties, taxes, and levies that are not covered under other central government schemes.
As per the central government, this move is part of broader efforts to enhance India’s competitiveness in global trade. The benefits were previously available until February 5, 2025. The export incentives have been brought back to ensure fair support across various export categories. The scheme will cover various sectors, including textiles, chemicals, pharmaceuticals, cars, agriculture, and food processing.
By March 31, 2025, the scheme had disbursed over INR 579.76 billion (US$6.78 billion), highlighting its role in boosting India’s merchandise exports. For FY 2025–26, the scheme will cover 10,780 HS lines for Domestic Tariff Area (DTA) exports and 10,795 for AA/EOU/SEZ exports.
The RoDTEP scheme is eligible for all exporters in respect of physical goods manufactured in the country. The benefits are provided to the exporter in the form of transferable duty credit/electronic scrip known as e-scrips. These are granted based on product-specific rates determined by the central government, either as a percentage of the Free on Board (FOB) value or a fixed amount per unit. Exporters must declare their RoDTEP claim when filing the shipping bill at the time of export. Once the export is completed and verified through the customs system, the e-scrip is credited to the exporter via the ICEGATE portal. These scrips can be used to pay basic customs duty on future imports or transferred to other importers.
Experts welcome RoDTEP revival, caution against frequent policy changes
New Delhi-based think tank Global Trade Research Initiative (GTRI) has welcomed the government’s decision to reinstate benefits under the RoDTEP scheme. However, it stressed the need for a stable five-year policy framework to strengthen India’s position as a dependable and competitive export hub.
Ajay Shrivastav, founder of GTRI, stated that to position India as a consistent and credible player in global exports, the central government must ensure uninterrupted RoDTEP coverage for at least five years. He cautioned that frequent policy changes can erode exporter confidence, damage policy credibility, and ultimately weaken India’s export competitiveness on the global stage.
The rebate under the scheme is allowed, based on the allowed percentage of FOB (also known as freight on board) value of exports, and issued in the form of an e-scrip, the details of which are maintained in a digital ledger by the Central Board of Indirect Taxes and Customs (CBIC).